Difference between Pre-Seed Funding Vs. Seed Funding

Well, everyone knows the fundamental step when raising the curtain for a new business to take the center stage; that’s FUNDING!

While embarking on the startup journey, a pioneering and motivated entrepreneur would know the basic facts. It is vital to know the categorization of early-stage business funding before you search for the best venture capital firms.

The Two Roads of Funding – Which one to Travel And Why?

So, up till here if there wasn’t clarity on types of funding and which one fits the respective startup. Check your horoscope today to confirm how lucky you are about to get. 

The most consequential aspect of business funding is the type to which it belongs. For tech startups, investors would assess entrepreneurs based on their knowledge and understanding of funding.

And faltering there will take down the entire ship to the bottom without any signs of SOS!

Early stages Business funding can be dissected into two stages – Pre-Seed Funding and Seed Funding. There is a clear bifurcation of pre-seed investors for startups and investors for seed funding for tech startups in the market. 

There is a possibility of ending up with unsuitable funding if a clear lens is not used to view these two types of funding.

With hefty investments for African startups that touch the jaw-dropping number of $1.3b, it’s a big game that is not easy to chase effectively unless you know which chord to strike. 

Answering the REAL ANSWER!

Diving straight into the pivotal angle of this discussion, let’s unearth the experts-verified understanding of pre-seed funding and seed funding 

At the very onset of the startup, not always that one might be super pumped to explore and seek venture capital firms right away. 

For many businesses, investors for tech startups were friends and family! But posing a complete flipped picture against that as of this current hour, the continent has seen a massive elevation in the increase of preseed investors for startups.

The most iconic perks received with pre-seed funding are,

  • Formulating a strong team
  • Building the features of a new/a rough existing minimum viable product (MVP)
  • Taking limited risks confidently
  • Preparing a solid foundation for the startup

While seed funding is a much more advanced stage of funding. The right time to dial investors who can help with seed funding for tech startups is when there is complete clarity on objectives, sales and revenue models, the team structure, and of course having a tested market-fit of the product. 

Although the dynamics of business funding are very much susceptible to a shift, yet, the true wit that can close deals knows the difference between pre-seed funding and seed funding

Many Questions, One Answer!

Latest studies reveal that African tech startups accounted for raising more than US$1 billion in funding, only by a few months of this year. 

No more debate on the competition realness here!

Thus, all you need to make your way through these clogged roads is by discovering the unrivaled name known for being widely chosen among pre-seed investors for startups and for seed funding for tech startups.

Meet the finest investor for tech startups in Africa – Blaq Ventures. Beyond investment and funding, there’s a lot more here that propels an entrepreneurial journey. 

Get started today!